Q2 2025 Quaker Chemical Corp Earnings Call Transcript
Key Points
- Quaker Houghton (KWR) delivered a 4% year-over-year increase in sales, with a 2% increase in organic sales volume.
- The company achieved strong performance in the Asia Pacific region, with an 8% increase in organic sales volume.
- Quaker Houghton (KWR) generated $42 million in operating cash flow and repurchased $33 million of shares, demonstrating effective capital allocation.
- The company reported $75.5 million of adjusted EBITDA in the second quarter, reflecting disciplined cost management and sales growth.
- Quaker Houghton (KWR) is executing a $20 million cost savings program, expected to deliver significant savings by the end of 2026.
- Gross margins declined slightly to 36% due to higher raw material and manufacturing costs.
- The company faced challenges from tariffs and geopolitical events, impacting demand and geographic/product mix.
- Segment earnings in the Americas declined by $5 million compared to the prior year, driven by lower sales and margins.
- The Asia Pacific segment experienced margin declines due to higher raw material costs and product/geographic mix.
- Quaker Houghton (KWR) recorded a non-cash goodwill impairment charge, resulting in a GAAP diluted earnings per share loss of $3.78.
Greetings and welcome to the Quaker Houghton, second quarter, 2025 earnings conference call. A brief question and answer session will follow the formal presentation.
(Operators Instructions)
As a reminder, this conference is being recorded.
I would now like to return the call over to Jeffrey Schnell, Vice President of Investor Relations. Mr. Schnell, you may begin.
Thank you. Good morning and welcome to our second quarter 2025 earnings conference call. On the call today are Joe Berquist, our President and Chief Executive Officer, Tom Coler, our Executive Vice President and Chief Financial Officer, and Robert Traub, our General Counsel.
Our comments relate to the financial information released after the close of the US markets yesterday, July 31, 2025.
Our press release and accompanying slides can be found on our investor relations website.
Both the prepared commentary and discussion during this call may contain forward-looking
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